Europe Bets U.S. Auto Demand to Stay High

By

Vanessa Fuhrmans

Updated Jan. 16, 2013 10:23 a.m. ET

DETROIT—Europe's auto makers are betting much of their fortunes this year on the promise of steady U.S. demand for new cars, raising the stakes for U.S. and Asian car makers as the European auto market remains in free fall and even China's once red-hot sales cool.

Daimler AG's Mercedes-Benz, BMW AG, Volkswagen AG and its luxury Audi brand at the North American International Auto Show this week showed new models aimed especially at broadening the companies' U.S. business. The big German car makers in recent months also...